Telenor ASA Q4 2021 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Titus Krahn - BofA Securities, Research Division - Analyst : Just maybe on the tower company from my side. I mean one of your Nordic peers as we have heard [since they] sold minority stakes on towers. Do you think that represents an option for you as well? And more specifically, maybe 2 very small follow-up questions. And do you see a difference in optionality and that attractiveness in your towers between ground-based towers and rooftops? And also, can you remind us on the impact from leases on the financials of your telco? I believe there was something on NOK 900 million in EBITDA. And how do leases impact that?

Question: Titus Krahn - BofA Securities, Research Division - Analyst : Okay. Just to clarify, so the NOK 900 million you, I think, announced a year ago, does that still [is where] before leases?

Question: Usman Ghazi - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst : I just -- maybe I just wanted to follow up on Maurice's question regarding the dividend. Maybe I'll ask it in a slightly different way. And then I had a follow-up on towers, if you don't mind, please. So on the dividend, I mean, I think if I look at free cash flow, free cash flow including M&A, dividend coverage is not a problem right because you're generating roughly NOK 10 billion ex Myanmar, then you've got NOK 3 billion from disposals in Sweden, and you've probably -- depending on your tower strategy and the synergies from the Thailand and Malaysia are approved, you'll be getting higher cash flow from those markets. So it seems like free cash flow including M&A should be able to cover a NOK 13 billion kind of dividend that's growing. But I guess if you take free cash flow ex M&A to be conservative, then obviously, the dividend at NOK 13 billion free cash flow excluding Myanmar and M&A sitting at NOK 10 billion, and that then creates some nervousness amongst investors. So in terms of how Telenor looks at this, is the policy that M&A is just ongoing and we will do whatever we can to support a free cash flow including M&A proceeds that will continue to cover the dividend at these levels? Or is there a different way that you're looking at things? That was just a follow-up, please. And then on towers, would -- I mean, I guess, the view of operators is slightly different. Some MNOs want to create kind of pan Nordic, pan European kind of entities rather than sell out, whereas others see recovers just as less strategic going forward. So we're happy selling out given the multiples that are being paid. So is -- I mean does Telenor have a view here on which camps it lies?

Question: Frank Maa° - DNB Markets, Research Division - Analyst : Yes. So just a question on the structure of your power contracts or electricity contracts in the Nordics. So last quarter, you said that basically, you have 6 contracts in the Nordics, except for Norway, where you have a variable price contracts. But you were not able to give us any color on the -- or information about the duration of the fixed contracts that are basically protecting you from energy price inflation in Sweden, Denmark and Finland. Will you be able to provide us with some new information on the structure of the contracts today?